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Item 2. Management’s Discussion and Analysis

2026-05-12 compared with 2025-11-06 · 174 added, 243 removed, 118 unchanged (78% of the section changed)

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

Ralliant Corporation (“Ralliant”, the “Company”, “its”, or “their”) is a global technology company with businesses that design, develop, manufacture, and service precision instruments and highly engineered products.

The Company empowers engineers with precision technologies essential for breakthrough innovation in an electrified and digital world, enabling its customers to bring advanced technologies to market faster and more efficiently.

Its strategic segments – Test and Measurement and Sensors and Safety Systems – include well-known brands with prominent positions across a range of attractive end markets.

On May 27, 2025, the Board of Directors of Fortive Corporation (“Fortive” or the “Former Parent”) approved the separation of Fortive’s Precision Technologies (“PT”) operating segment through the pro rata distribution of all of the issued and outstanding common stock of Ralliant to Fortive's stockholders (the “Separation”), which was completed on June 28, 2025.

This Management’s Discussion and Analysis of Financial Condition and Results of Operations (“MD&A”) is designed to provide a reader of the financial statements with a narrative from the perspective of management.

The following discussion should be read in conjunction with the MD&A and combined financial statements included in the Company’s Information Statement filed as an exhibit to the Company’s Form 10-12B/A on May 28, 2025.

The following discussion should be read in conjunction with the MD&A and consolidated and combined financial statements included in the Company’s 2025 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”) on February 26, 2026 (the “Form 10-K”).

This MD&A is divided into six sections:

• Information Relating to Forward-Looking Statements

• Basis of Presentation

• Information Relating to Forward-Looking Statements

• Results of Operations

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BASIS OF PRESENTATION

The accompanying consolidated and combined condensed financial statements present the historical financial position, results of operations, changes in equity and cash flows of the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for the preparation of carved-out combined condensed financial statements.

The Company has historically operated as part of Fortive’s Precision Technologies segment and not as a stand-alone company.

The financial statements as of June 27, 2025 or earlier have been derived from Fortive’s historical accounting records and are presented on a carve-out basis.

All revenues and costs, as well as assets and liabilities, directly associated with the business activity of the Company are included as a component of the financial statements.

Those historical financial statements also included allocations of certain general, administrative, and sales and marketing expenses from Fortive’s corporate office and from other Fortive businesses to the Company.

The following discussion of financial results presents the historical financial position, results of operations, changes in equity and cash flows of the Company in accordance with accounting principles generally accepted in the United States of America (“GAAP”), unless otherwise specified.

Prior to the Separation, the Company operated as Fortive’s PT operating segment and not as a standalone company.

The combined financial statements as of June 27, 2025 or earlier have been derived from Fortive’s consolidated financial statements and accounting records and prepared in accordance with GAAP for the preparation of carved-out combined financial statements.

Through the date of the Separation, all revenues and costs, as well as assets and liabilities, directly associated with the business activity of the Company are included as a component of the combined financial statements.

Prior to the Separation, the combined financial statements also included allocations of certain general, administrative, and sales and marketing expenses from Fortive’s corporate office and from other Fortive businesses to the Company.

The allocations were determined on a reasonable basis for the applicable periods;

however, the amounts were not necessarily representative of the amounts that would have been reflected in the financial statements had the Company been an entity that operated independently of Fortive.

Prior to the Separation, the Company was dependent upon Fortive for all of its working capital and financing requirements as Fortive uses a centralized approach to cash management and financing of its operations.

Because the Company was part of Fortive for the three and nine months ended September 27, 2024, only cash, cash equivalents, and borrowings clearly associated with Ralliant and related to the Separation, including the financing transactions described in the “Liquidity and Capital Resources” section, have been included in these Consolidated and Combined Condensed Financial Statements.

Other financial transactions relating to the business operations of the Company during the period were accounted for through the Net Former Parent investment account of the Company.

The Company’s business consists of two segments:

Test and Measurement and Sensors and Safety Systems.

For additional details regarding these operations, refer to Note 12 titled “Segment Information” in the Notes to the Consolidated and Combined Condensed Financial Statements.

Segment Realignment and Divestiture

In January 2024, Fortive realigned Invetech from the Advanced Healthcare Solutions segment to the PT segment.

In June 2024, Fortive divested and transferred ownership of Invetech, excluding the Dover Motion Business, to Invetech’s management team (the “Invetech Divestiture”).

As a result of the Invetech Divestiture, in the three months ended September 27, 2024, Ralliant recorded a net realized loss of $25.6 million, which is identified as “Loss from divestiture” in the Consolidated and Combined Condensed Statements of Earnings.

The Invetech Divestiture did not represent a strategic shift with a major effect on the Ralliant’s operations and financial results, and therefore the divested businesses are not reported as discontinued operations.

These financial results for periods prior to the Separation may not be indicative of Ralliant’s financial performance had it been a separate standalone entity throughout such periods, nor are the results stated herein indicative of what its financial position, results of operations, and cash flows may be in the future.

INFORMATION RELATING TO FORWARD-LOOKING STATEMENTS

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All statements other than historical factual information are forward-looking statements, including, without limitation, statements regarding:

future financial performance and results, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, the Company’s liquidity position or other financial measures;

management’s plans and strategies for future operations, including statements relating to anticipated operating performance, cost reductions, restructuring activities, new product and service developments, competitive strengths or market position, acquisitions, divestitures, strategic opportunities, securities offerings, stock repurchases, dividends and executive compensation;

the effects of the Separation on the Company;

growth, declines and other trends in markets the Company sells into, including the expected impact of trade and tariff policies;

changes in government contracting requirements, and reductions in federal spending;

Ralliant’s future financial performance and results, tax rates, tax provisions, cash flows, pension and benefit obligations and funding requirements, the Company’s liquidity position or other financial measures;

management’s plans and strategies for future operations and growth, including statements relating to anticipated operating performance, cost reductions, productivity and savings initiatives, innovation, restructuring activities, new product and service developments, customer demand, competitive strengths or market position, acquisitions, divestitures, strategic opportunities, securities offerings, capital allocation priorities, stock repurchases (including the anticipated accelerated share repurchase (“ASR”) program), and dividends;

the effects of the separation from Fortive on the Company;

growth, declines and other trends in markets the Company sells into, including the expected impact of trade and tariff policies, the geopolitical climate, impacts from changes in electric vehicle demand, and increased demand in the Defense and Space end market;

changes in government contracting requirements and in federal spending;

government shutdowns;

new or modified laws, regulations and accounting pronouncements;

impact of climate-related events or transition activities;

outstanding claims, legal proceedings, tax audits and assessments and other contingent liabilities;

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general economic and capital markets conditions, including expected impact of inflation or interest rate changes;

impact of geopolitical events and other hostilities;

impact of geopolitical events;

the timing of any of the foregoing;

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and any other statements that address events or developments that the Company intends or believes will or may occur in the future.

Terminology such as “believe,” “anticipate,” “will,” “should,” “could,” “intend,” “plan,” “expect,” “estimate,” “project,” “target,” “may,” “possible,” “potential,” “forecast,” “outlook,” and “positioned” and similar references to future periods are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.

Forward-looking statements are based on assumptions and assessments made by management of the Company in light of its experience and perceptions of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate.

These forward-looking statements are subject to a number of risks and uncertainties, including but not limited to the risks and uncertainties set forth under “Cautionary Statement Concerning Forward-Looking Statements,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Information Statement filed as an exhibit to the Company’s Form 10-12B/A on May 28, 2025.

Terminology such as “believe,” “anticipate,” “will,” “should,” “could,” “intend,” “plan,” “expect,” “estimate,” “project,” “target,” “may,” “might,” “opportunity,” “possible,” “potential,” “seek,” “forecast,” “outlook,” and “position” and similar references to future periods are intended to identify forward-looking statements, although not all forward-looking statements are accompanied by such words.

Forward-looking statements are based on assumptions and assessments made by management of the Company in light of their experience and perceptions of historical trends, current conditions, expected future developments, and other factors they believe to be appropriate.

These forward-looking statements are subject to a number of risks and uncertainties, including but not limited to the risks and uncertainties set forth under “Information Relating to Forward-Looking Statements and Risk Factor Summary,” “Risk Factors,” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Form 10-K.

Forward-looking statements are not guarantees of future performance and actual results may differ materially from the results, developments, and business decisions contemplated by the Company’s forward-looking statements.

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Ralliant assumes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, and developments or otherwise.

See “Risk Factors”, “Cautionary Statement Concerning Forward-Looking Statements” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Company’s Information Statement filed as an exhibit to the Company’s Form 10-12B/A on May 28, 2025 and “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in this Quarterly Report on Form 10-Q for further discussion regarding reasons that actual results may differ materially from the results, developments, and business decisions contemplated by the forward-looking statements.

The timing and amount of share repurchases will be determined by the Company based on its evaluation of market conditions and other factors.

The Company’s stated plans do not obligate it to acquire any particular amount of shares and may be suspended or discontinued at any time.

Ralliant is a global technology company with businesses that design, develop, manufacture, and service precision instruments and highly engineered products.

Its strategic segments – Test and Measurement and Sensors and Safety Systems – include well-known brands with prominent positions across a range of attractive end markets.

The Company is headquartered in Raleigh, North Carolina, and has a global team of approximately 7,000 employees with solutions which are used in more than 90 countries by over 90,000 customers.

Ralliant is a multinational business with global operations, of which 47.9% and 49.3% of its sales were derived from customers outside the United States, as of the nine months ended September 26, 2025 and September 27, 2024, respectively.

Its strategic segments – Sensors and Safety Systems and Test and Measurement – include well-known brands with prominent positions across a range of attractive end markets.

The Company is headquartered in Raleigh, North Carolina, and has a global team of approximately 7,000 employees with solutions that are used in more than 90 countries by over 90,000 customers.

Ralliant is a multinational business with global operations, of which sales derived from customers outside the United States were 46.5% and 49.3% for the three months ended April 3, 2026 and March 28, 2025, respectively.

As a company with global operations, Ralliant’s businesses are affected by worldwide, regional, and industry-specific economic and political factors.

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The Company monitors key competitors and customers, including their sales to the extent possible, to gauge relative performance and the outlook for the markets within which it competes.

Ralliant operates in a highly competitive business environment and its long-term growth and profitability will depend, in particular, on its ability to execute across geographies and end markets, develop innovative and differentiated new product offerings, continue to reduce costs, improve operating efficiency, and attract, retain, and develop an empowered workforce.

Ralliant operates in a highly competitive business environment and its long-term growth and profitability will depend, in particular, on its ability to execute across geographies and end markets;

develop innovative and differentiated new product offerings;

continue to reduce costs;

improve operating efficiency;

and attract, retain, and develop an empowered workforce.

The Company makes, and expects to continue to make, investments in research and development, customer-facing resources, its workforce and its manufacturing capabilities and capacity to meet the needs of its customers.

In 2025, the U.S.

government began imposing tariffs on products from all countries and additional individualized reciprocal tariffs on certain countries.

In response, China, in particular, and other countries have announced tariffs against certain imports from the United States.

These changes to trade policies, retaliatory measures, and prolonged uncertainty in trade relationships negatively impact operations and financial results, including potential impairment of certain intangible assets, through resulting supply chain disruptions, delayed shipments, and increased operational complexities and costs.

The Company continues to evaluate the evolving impact of these tariffs, as the application and imposition of these tariffs remain unpredictable.

Ongoing changes to U.S.

tariff policy have resulted in broad-based increases in tariff rates, and several countries, including China, have imposed or threatened to impose retaliatory measures on imports from the U.S.

Although the U.S.

Supreme Court struck down tariff provisions authorized under the International Emergency Economic Powers Act (“IEEPA”), the U.S.

government immediately replaced the IEEPA tariffs with tariffs authorized under a different provision of law.

government continues to pursue broad-based tariffs under provisions less vulnerable to legal challenge, and further changes to U.S.

tariff policy may be made in the future.

On April 20, 2026, Customs and Border Protection launched Phase 1 of an administrative IEEPA tariff refund process.

The Company has filed refund claims for IEEPA tariffs paid and eligible for refund under this phase.

The timing and amount of any refunds is uncertain.

Accordingly, no recovery has been recognized in the accompanying financial statements as of April 3, 2026.

Changes to trade policies, retaliatory measures, and sustained uncertainty in global trade relationships have negatively impacted, and are expected to continue to negatively impact, the Company’s operations and financial results, including through resulting supply chain disruptions, increased input costs, delayed shipments, and increased operational complexities and costs.

Additionally, these developments have contributed in the past and may in the future contribute to adverse macroeconomic conditions and increased economic nationalism, which could further reduce demand for the Company’s products and negatively impact its business.

For additional information, see “Risk Factors” in the Form 10-K.

The Company continues to monitor and evaluate the evolving impact of these tariffs, as the application and imposition of these tariffs remain unpredictable.

The Company continues to deploy the Ralliant Business System (“RBS”), including tools and processes to leverage existing sourcing strategies and optimize production and logistics, to actively manage these challenges and utilize pricing, cost, and productivity actions and other countermeasures to offset the aforementioned dynamics.

Enterprise Productivity Program

On May 12, 2026, Ralliant announced a new Enterprise Productivity Program, which is estimated to drive approximately $50 million to $60 million of net annualized savings once fully executed by the end of 2028.

These anticipated savings are inclusive of the Cost Savings Program announced in the prior year.

The Enterprise Productivity Program includes expected cost of sales savings primarily driven by strategic sourcing actions and the introduction of a Group Purchasing Office.

The Enterprise Productivity Program also includes expected general and administrative cost savings with a focus on labor productivity, spend optimization, and organization simplification.

Non-GAAP Measures

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The Company excludes the effect of foreign currency translation from organic revenue because the impact of foreign currency translation is not under management’s control and is subject to volatility.

Management believes the exclusion of the effect of acquisitions and divestitures and foreign currency translation may facilitate the assessment of underlying business trends and may assist in comparisons of long-term performance.

On January 3, 2024, Ralliant acquired EA Elektro-Automatik Holding GmbH (“EA”), a leading supplier of high-power electronic test solutions for energy storage, mobility, hydrogen, and renewable energy applications.

The acquisition of EA bolsters Ralliant’s innovative portfolio of products and services for engineers with complementary test and measurement solutions enabling the global energy transition.

The total consideration paid was approximately $1.72 billion, net of acquired cash.

Fortive, on behalf of Ralliant, funded this transaction with financing activities and available cash.

Ralliant recorded approximately $1.18 billion of goodwill within its Test and Measurement segment related to the EA acquisition, which was not tax deductible.

The Company anticipates future tax benefits as a result of the transaction.

In June 2024, Fortive completed the Invetech Divestiture.

As a result of the Invetech Divestiture, in the nine months ended September 27, 2024, Ralliant recorded a net realized loss of $25.6 million, which is identified as “Loss from divestiture” in the Consolidated and Combined Condensed Statements of Earnings.

Business Performance

Business Performance During the Three and Nine Months Ended September 26, 2025

During the three and nine months ended September 26, 2025 (the “quarter” or the “third quarter”, and “year-to-date period,” respectively), sales decreased by 0.5% and 5.7%, respectively.

The year-over-year decrease in sales in the third quarter was driven by a 1.4% decrease in organic revenue, partially offset by an increase of 0.9% from favorable foreign currency exchange rates.

The decrease in organic revenue in the third quarter included volume declines of 5.2%, partially offset by favorable pricing of 3.8%.

The year-over-year decrease in sales in the year-to-date period was driven by 5.4% decrease from organic revenue declines and a 0.7% decrease from the Invetech Divestiture, partially offset by 0.4% increase from favorable foreign currency exchange rates.

The decrease in organic revenue in the year-to-date period included volume declines of 8.5%, partially offset by favorable pricing of 3.1%.

Geographically, in the third quarter, revenue was flat year-over-year, driven by 3% growth in North America, offset by 6% decline in Western Europe, 6% decline in China, and 3% decline in the rest of the world.

Geographically, in the year-to-date period, revenue decreased 6% year-over-year, driven by 20% decline in Western Europe, 3% decline in North America, 6% decline in China, and flat revenue in the rest of the world.

RESULTS OF OPERATIONS

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Three Months Ended

Nine Months Ended

($ in millions) September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

($ in millions) April 3, 2026 March 28, 2025

Sales $ 534.6 $ 481.8

Cost of Sales (262.3) (238.4)

Gross Profit 272.3 243.4

Selling, general, and administrative (“SG&A”) expenses (160.5) (128.3)

Research and development (“R&D”) expenses (43.7) (41.3)

Operating profit $ 68.1 $ 73.8

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Amortization $ (22.3) $ (20.3)

Operating profit as a % of sales 9.8 % 20.9 % 12.2 % 22.3 %

Depreciation as a % of sales 1.4 % 1.3 % 1.4 % 1.4 %

Amortization as a % of sales 4.3 % 4.0 % 4.3 % 3.9 %

Gross profit margin 50.9 % 50.5 %

Operating profit margin 12.7 % 15.3 %

Components of Sales Growth

Three Months Ended September 26, 2025 vs.

Comparable 2024 Period

Nine Months Ended September 26, 2025 vs.

Three Months Ended April 3, 2026 vs.

Comparable 2025 Period

Total revenue growth (GAAP) 11.0 %

Acquisitions and divestitures

Currency exchange rates (2.2) %

Organic revenue growth (Non-GAAP) 8.8 %

See the Test and Measurement and Sensors and Safety Systems sections below for further discussion of year-over-year sales analysis.

During the three months ended April 3, 2026 (the “first quarter”), sales increased by 11.0%.

The year-over-year increase in sales in the first quarter was driven by an 8.8% increase in organic revenue and a 2.2% increase from favorable foreign currency exchange rates.

The increase in organic revenue in the first quarter included volume increases of 6.9% and favorable pricing increase of 1.9%.

Geographically, the sales increase of 11.0% year-over-year was driven by 17.2% growth in North America, 8.2% growth in China, 3.9% growth in Western Europe, and 0.8% growth in the rest of the world.

Cost of Sales and Gross Profit

The year-over-year increase in gross profit during the first quarter was primarily due to volume and pricing increases.

Operating Expenses

The year-over-year increase of $32.2 million in SG&A expenses during the first quarter compared with the prior year period was primarily due to standalone public company costs that did not occur in the prior period and increases in other employee costs related to higher compensation, benefits, and contract dis-synergies which are allocated to the segments.

R&D, consisting principally of internal and contract engineering personnel costs, increased $2.4 million during the first quarter compared with the comparable period in 2025.

Operating Profit Margins

Operating profit margin was 9.8% for the third quarter, representing a decrease of 1,110 basis points, compared with 20.9% for the comparable period of 2024.

The year-over-year changes in operating profit margin primarily comprised the following:

• The third quarter decrease in results primarily driven by -425 basis points from the stock-based compensation modification in the third quarter resulting from the revaluation of the share price as a result of the Separation;

-270 basis points from volume reduction;

-250 basis points from public company standalone costs;

-200 basis points from higher salaries and wages;

partially offset by +180 basis points from price increases.

The net impact of tariffs was fully offset via countermeasures in the period.

Operating profit margin was 12.2% for the year-to-date period, representing a decrease of 1,010 basis points, compared with 22.3% for the comparable period of 2024.

The year-over-year changes in operating profit margin primarily comprised the following:

• The year-over-year decrease in results from existing businesses — unfavorable 580 basis points, primarily driven by:

◦ -350 basis points driven by volume reduction;

-235 basis points from higher salaries and wages;

-130 basis points from standalone public company costs;

-35 basis points from the net impact of tariffs;

partially offset by 125 basis points from price increases.

◦ As a separate public company, Ralliant incurred incremental costs with the establishment of a separate corporate function, primarily related to employee compensation and IT system costs, as well as incremental standalone public company costs such as corporate governance costs, including audit and other professional services fees, consulting, and legal fees, and stock exchange listing fees.

• The year-over-year effect of the gain on sale of land and certain office buildings in 2024 — unfavorable 400 basis points.

• The stock-based compensation modification in the third quarter resulting from the revaluation of the share price as a result of the Separation — unfavorable 150 basis points.

• The year-over-year net effect of acquisition and divestiture related transaction costs incurred in 2024 primarily related to the EA acquisition — favorable 160 basis points.

Operating profit margin was 12.7% for the first quarter, representing a decrease of 260 basis points compared with 15.3% for the comparable period of 2025.

The year-over-year decline in operating profit margin was primarily due to higher operating expenses related to standalone public company costs and higher employee costs allocated to the segments, partially offset by higher volume and price increases.

See the Sensors and Safety Systems and Test and Measurement sections below for further discussion of year-over-year sales and operating profit margin.

Business Segments and Geographic Area Results

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Three Months Ended

Nine Months Ended

($ in millions) September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Test and Measurement $ 203.1 $ 236.6 $ 584.1 $ 707.2

($ in millions) April 3, 2026 March 28, 2025

Sensors and Safety Systems $ 324.4 $ 293.3

Test and Measurement 210.2 188.5

Total $ 534.6 $ 481.8

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China 78.4 72.4

Western Europe

70.2 74.8 197.4 246.3

All other 170.2 165.2

Total $ 534.6 $ 481.8

TEST AND MEASUREMENT

The Company’s Test and Measurement segment provides precision test and measurement instruments, systems, software, and services.

Through its portfolio of industry leading solutions, including oscilloscopes, probes, source measuring units, semiconductor test systems, high-power bi-directional power supplies, and measurement analysis software packages, the Test and Measurement segment empowers scientists, engineers, and technicians to create and realize technological advances with ever greater efficiency, speed, and accuracy.

Test and Measurement Selected Financial Data

Three Months Ended

Nine Months Ended

($ in millions) September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Sales $ 203.1 $ 236.6 $ 584.1 $ 707.2

Operating (loss) profit $ (1.7) $ 29.3 $ (27.9) $ 111.6

Depreciation $ 4.2 $ 3.8 $ 11.8 $ 13.6

Amortization $ 22.0 $ 20.7 $ 63.0 $ 61.5

Operating (loss) profit as a % of sales (0.8) % 12.4 % (4.8) % 15.8 %

Depreciation as a % of sales 2.1 % 1.6 % 2.0 % 1.9 %

Amortization as a % of sales 10.8 % 8.7 % 10.8 % 8.7 %

Components of Sales Growth

Three Months Ended September 26, 2025 vs.

Comparable 2024 Period

Nine Months Ended September 26, 2025 vs.

Comparable 2024 Period

Total revenue growth (GAAP) (14.1) % (17.4) %

Currency exchange rates (1.2) % (0.5) %

Organic revenue growth (Non-GAAP) (15.3) % (17.9) %

The decreases in sales for both the third quarter and year-to-date period were primarily driven by decreases in organic revenue of 15.3% and 17.9%, respectively, partially offset by the favorable impact from foreign currency exchange rates.

The decrease in organic revenue in the third quarter and year-to-date period was primarily attributable to declines in sales volumes of 18.1% and 20.0%, respectively, primarily in product lines for oscilloscopes and related accessories and high-power solutions which were driven by demand weakness across diversified electronics and communications end markets.

Geographically, in the third quarter, revenue decreased 14% year-over-year, driven by 16% decline in North America, 20% decline in China, 15% decline in Western Europe, and 5% decline in the rest of the world.

Geographically, in the year-to-date period, revenue decreased 17% year-over-year, driven by 34% decline in Western Europe, 15% decline in North America, 17% decline in China, and 7% decline in the rest of the world.

Operating loss margin was 0.8% for the third quarter, a decrease of 1,320 basis points compared with operating profit margin of 12.4% for the comparable period in 2024, primarily impacted by:

• The year-over-year decrease in results from existing businesses — unfavorable 1,025 basis points, primarily driven by:

◦ -800 basis points driven by net volume declines due to demand weakness in diversified electronics and communications end markets, partially offset by price increases;

and -170 basis points primarily from higher salaries and wages.

• The year-over-year effect of costs relating to the discrete restructuring plans — unfavorable 150 basis points.

Operating loss margin was 4.8% for the year-to-date period, a decrease of 2,060 basis points compared with operating profit margin of 15.8% for the comparable period in 2024, primarily impacted by:

• The year-over-year decrease in results from existing businesses — unfavorable 1,050 basis points, primarily driven by:

◦ -950 basis points driven by volume declines due to demand weakness in all end markets, partially offset by price increases;

and -300 basis points primarily from higher salaries and wages.

• The year-over-year effect of the gain on sale of land and certain office buildings in 2024 — unfavorable 900 basis points.

• The year-over-year effect of acquisition-related transaction costs incurred in 2024 related to the EA acquisition — favorable 360 basis points.

SENSORS AND SAFETY SYSTEMS

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Three Months Ended

Nine Months Ended

($ in millions) September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

($ in millions) April 3, 2026 March 28, 2025

Sales $ 324.4 $ 293.3

Selling, general, and administrative expenses $ (56.4) $ (46.7)

Research and development expenses $ (9.8) $ (8.2)

Operating profit $ 88.7 $ 87.0

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Amortization $ (0.3) $ (0.6)

Operating profit as a % of sales 27.6 % 27.8 % 27.6 % 27.3 %

Depreciation as a % of sales 0.9 % 1.0 % 0.9 % 1.0 %

Amortization as a % of sales 0.2 % 0.2 % 0.2 % 0.2 %

Operating profit margin

27.3 % 29.7 %

Components of Sales Growth

Three Months Ended September 26, 2025 vs.

Comparable 2024 Period

Nine Months Ended September 26, 2025 vs.

Three Months Ended April 3, 2026 vs.

Comparable 2025 Period

Total revenue growth (GAAP) 10.6 %

Acquisitions and divestitures — % 1.2 %

Currency exchange rates (1.8) %

Organic revenue growth (Non-GAAP) 8.8 %

The increase in sales for the third quarter was driven by price and volume increases of 9.8% and favorable impact from foreign currency exchange rates.

The sales result for the year-to-date period was driven by price and volume increases of 4.4%, partially offset by the 1.2% unfavorable impact from the Invetech Divestiture.

Year-over-year price increases in the Sensors and Safety Systems segment contributed 4.6% and 3.9% to sales growth during the third quarter and year-to-date period, respectively, compared with 2024, and is reflected as a component of the change in organic revenue.

The net volume increase in the third quarter resulted from increases in the energetic materials product line from aero, defense, and space customers, increases in liquid and air sensors in manufacturing and other end markets, and increases in utility solutions.

The net volume increase in the year-to-date period resulted primarily from increases in utility solutions, partially offset by declines in automation and control applications within the industrial manufacturing end market.

Geographically, in the third quarter, revenue increased 11% year-over-year, driven by 12% growth in North America, 23% growth in China, and 4% growth in Western Europe, and flat revenue in the rest of the world.

Geographically, in the year-to-date period, revenue increased 3% year-over-year, driven by 15% growth in China, 2% growth in North America, 8% growth in the rest of the world, partially offset by 2% decline in Western Europe.

Operating profit margin was 27.6% for the third quarter, which remained consistent compared with 27.8% for the comparable period in 2024 and operating profit margin was 27.6% for the year-to-date period, which remained consistent compared with 27.3% for the comparable period in 2024.

COST OF SALES AND GROSS PROFIT

Three Months Ended

Nine Months Ended

($ in millions) September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

Sales $ 529.1 $ 531.7 $ 1,514.3 $ 1,606.6

Cost of sales (260.5) (251.9) (753.9) (776.2)

Gross profit $ 268.6 $ 279.8 $ 760.4 $ 830.4

Gross profit margin 50.8 % 52.6 % 50.2 % 51.7 %

The year-over-year decrease in gross profit during the third quarter was primarily due to net volume declines, partially offset by increases in price.

The year-over-year decrease in gross profit during the year-to-date period was primarily due to net volume declines, higher employee compensation costs, and tariffs, partially offset by year-over-year increases in price.

OPERATING EXPENSES

The increase in sales in the first quarter year-over-year was driven by increases in organic revenue of 8.8% and the favorable impact from foreign currency exchange rates.

The year-over-year increase in organic revenue was primarily attributable to increased sales volumes of 6.0%, primarily from defense and space customers and liquid and air sensors in industrial manufacturing and other end markets, partially offset by volume reductions in automation and control applications within the industrial manufacturing end market.

Year-over-year price increases contributed 2.8% to sales growth in the first quarter and is reflected as a component of the change in organic revenue.

Geographically, the sales increase of 10.6% year-over-year was driven by 13.2% growth in North America, 8.8% growth in China, 8.2% growth in the rest of the world, and 0.6% growth in Western Europe.

Operating profit margin was 27.3% for the first quarter, a decrease of 230 basis points compared with 29.7% for the comparable period in 2025, primarily driven by other employee costs related to higher compensation, benefits, and contract dis-synergies, which were allocated from corporate, partially offset by price increases.

TEST AND MEASUREMENT

The Company’s Test and Measurement segment provides precision test and measurement instruments, systems, and services.

Test and Measurement Selected Financial Data

Three Months Ended

Nine Months Ended

($ in millions) September 26, 2025 September 27, 2024 September 26, 2025 September 27, 2024

($ in millions) April 3, 2026 March 28, 2025

Sales $ 210.2 $ 188.5

Selling, general, and administrative (“SG&A”) expenses $ 177.8 $ 128.7 $ 453.5 $ 414.6

Research and development (“R&D”) expenses $ 38.8 $ 39.9 $ 122.1 $ 121.4

SG&A as a % of sales 33.6 % 24.2 % 29.9 % 25.8 %

R&D as a % of sales 7.3 % 7.5 % 8.1 % 7.6 %

The year-over-year increase in SG&A expenses during the third quarter was primarily due to the stock-based compensation modification resulting from the conversion of Fortive equity awards upon the Separation, standalone public company costs, and higher employee compensation.

The year-over-year increase in SG&A expenses during the year-to-date period was primarily due to the stock-based compensation modification resulting from the conversion of Fortive equity awards upon the Separation, higher employee compensation, Ralliant corporate costs incurred to establish a separate corporate function, in addition to Fortive allocated corporate costs that were both incurred in the second quarter, and standalone public company costs, partially offset by lower year-over-year transaction expenses related to the EA acquisition in 2024 and benefits from productivity measures through RBS initiatives.

R&D, consisting principally of internal and contract engineering personnel costs, remained consistent during the third quarter and year-to-date period compared with the comparable periods of 2024.

Selling, general, and administrative expenses $ (86.7) $ (80.3)

Research and development expenses $ (33.9) $ (33.1)

Operating loss

$ (3.2) $ (11.9)

Depreciation $ (4.3) $ (3.8)

Amortization $ (22.0) $ (19.7)

Operating loss margin

(1.5) % (6.3) %

Components of Sales Growth

Three Months Ended April 3, 2026 vs.

Comparable 2025 Period

Total revenue growth (GAAP) 11.6 %

Currency exchange rates (2.9) %

Organic revenue growth (Non-GAAP) 8.7 %

The increase in sales in the first quarter was driven by organic revenue growth of 8.7% and the favorable impact from foreign currency exchange rates.

The year-over-year increase in organic revenue was primarily attributable to increased sales volumes of 8.3%, primarily driven by strengthened demand across communications and diversified electronics end markets.

Year-over-year price increases contributed 0.4% to sales growth in the first quarter and is reflected as a component of the change in organic revenue.

Geographically, the sales increase of 11.6% year-over-year was driven by 28.3% growth in North America, 7.9% growth in China, and 7.5% growth in Western Europe, partially offset by a 6.1% decline in the rest of the world.

Operating loss margin was 1.5% for the first quarter, an increase of 480 basis points compared with operating loss margin of 6.3% for the comparable period in 2025, primarily impacted by higher sales volume, partially offset by other employee costs related to higher compensation, benefits, and contract dis-synergies, which were allocated from corporate, and increased restructuring costs.

NON-OPERATING INCOME (EXPENSE), NET

During the three and nine months ended September 26, 2025, the Company recognized interest expense of $16.3 million.

During the nine months ended September 27, 2024, the Company recognized a net loss of $25.6 million related to the Invetech Divestiture.

For further discussion of this transaction, refer to Note 1 of the consolidated and combined condensed financial statements.

Ralliant’s effective tax rates were (13.4)% and 9.6% for the three and nine months ended September 26, 2025, respectively, compared with 18.0% and 17.8% for the three and nine months ended September 27, 2024, respectively.

The decrease in the effective tax rate for the three months ended September 26, 2025 compared with the three months ended September 27, 2024 was primarily related to the impact of the repricing of deferred tax balances due to an enacted reduction in the German corporate tax rate and the impact of credits and deductions provided by law, including those associated with state income taxes, and changes in uncertain tax position reserves.

The decrease in the effective tax rate for the nine months ended September 26, 2025 compared with the nine months ended September 27, 2024 was attributable to the impact of the repricing of deferred tax balances due to German corporate tax rate change on deferred taxes.

Globally, the Company monitors legislative action and the Organization for Economic Co-operation and Development (“OECD”) initiatives related to global taxation.

The impact of the OECD framework for a “Pillar Two” global minimum corporate income tax rate of 15% has been included within the provision for income taxes.

On June 28, 2025, the OECD released a statement recognizing an agreement between the OECD and the G20 to recognize the U.S.

minimum tax rules to exempt U.S.

multinationals from certain portions of the Pillar Two framework.

However, as of the balance sheet date, no related legislation has been enacted.

The Company continues to monitor further guidance and legislative developments related to the Pillar Two framework.

On July 4, 2025, the One Big Beautiful Bill Act (“OBBBA”) was enacted in the U.S.

The OBBBA includes significant provisions, including, but not limited to, the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework and the restoration of favorable tax treatment for certain business investments.

The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027.

As a result of the retroactive treatment for research and experimental expenditures enacted under OBBBA, Ralliant was notified of Fortive’s intent to accelerate the amortization of previously capitalized research and experimental expenditures.

Accordingly, Ralliant reduced its deferred tax assets by approximately $65 million during the quarter.

During the three months ended April 3, 2026, the Company recognized interest expense of $14.7 million.

The Company incurred no interest expense for the comparable period in the prior year.

Ralliant’s effective tax rate was 16.5% for the three months ended April 3, 2026 compared with 12.8% for the three months ended March 28, 2025.

The increase in the effective tax rate for the three months ended April 3, 2026 compared with the three months ended March 28, 2025 was primarily attributable to the effects of various tax credits and deductions provided by law, including those associated with state income taxes, U.S.

international taxes, non-deductible executive compensation, and changes in the Company’s uncertain tax position reserves.

In January 2026, the Organization for Economic Co-operation and Development (“OECD”) released a side-by-side package that would exempt U.S.

multinational companies from certain aspects of the Pillar Two framework.

The application of this exemption remains subject to enactment by jurisdictions that have adopted, or are in the process of adopting, the Income Inclusion Rule and Undertaxed Profits Rule.

For additional information regarding the OECD and the Pillar Two framework, see “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in the Form 10-K.

The Company does not anticipate a material impact on its consolidated condensed financial statements and will continue to monitor local country adoption.

COMPREHENSIVE INCOME

Comprehensive income decreased by $142.0 million during the third quarter compared with the comparable period in 2024 due to unfavorable changes in foreign currency translation of $90.9 million, partially offset by a decrease in net income of $51.0 million.

Comprehensive income increased by $102.4 million during the year-to-date period compared with the comparable period in 2024 due to favorable changes in foreign currency translation of $222.6 million, partially offset by a decrease in net income of $120.5 million.

Comprehensive income decreased by $171.4 million during the first quarter compared with the comparable period in 2025 due to unfavorable changes in foreign currency translation of $151.7 million, as well as a decrease in net earnings of $19.7 million.

LIQUIDITY AND CAPITAL RESOURCES

Before the Separation, the Company was dependent upon Fortive for all of the Company’s working capital and financing requirements as Fortive uses a centralized approach to cash management and financing of its operations.

Because the Company was part of Fortive during the six months ended June 27, 2025, only cash, cash equivalents, and borrowings clearly associated with Ralliant prior to June 27, 2025 and related to the Separation, including the financing transactions described below, have been included in the consolidated and combined condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Other financial transactions relating to the business operations of the Company through the date of the Separation were accounted for through the Net Former Parent investment account of the Company.

As a result of the Separation, the Company no longer participates in Fortive’s cash management and financing operations.

Management assesses the Company’s liquidity in terms of its ability to generate cash to fund its operating and investing activities.

The Company continues to generate substantial cash from operating activities and believes that its operating cash flow and other sources of liquidity, will, after giving effect to any dividend payments and debt servicing obligations, be sufficient to allow the Company to continue funding and investing in its existing businesses, consummate strategic acquisitions, fulfill its contractual obligations, and manage its capital structure on a short- and long-term basis.

In connection with the Separation, the Former Parent transferred to the Company certain cash balances and amounts due to banks.

On June 27, 2025, Ralliant borrowed $1.15 billion, drawn pro rata under the eighteen month, $600.0 million senior unsecured delayed-draw term loan facility (the “Eighteen-Month Term Loan”), and the three-year, $700.0 million senior unsecured delayed-draw term loan facility (the “Three-Year Term Loan”).

Prior to the Separation, Ralliant was dependent upon Fortive for all funding needs.

For the three months ended March 28, 2025, only cash, cash equivalents, and borrowings clearly associated with Ralliant have been included in the consolidated and combined condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q.

Financial transactions relating to business operations prior to the Separation were accounted for through the Net Former Parent investment account of the Company.

Following the Separation, management independently assesses the Company’s ability to generate cash to fund operating and investing activities.

The Company believes its operating cash flow and other sources of liquidity will, after giving effect to any dividend payments and debt servicing obligations, be sufficient to fund the Company’s existing businesses, consummate strategic acquisitions, fulfill its contractual obligations, and manage its capital structure on a short- and long-term basis.

On May 15, 2025 (the “Closing Date”), the Company en tered into a credit agreement (the “Credit Agreement”), with a syndicate of banks.

This included an eighteen month, $600.0 million senior unsecured delayed-draw term loan facility (the “Eighteen-Month Term Loan”), a three-year, $700.0 million senior unsecured delayed-draw term loan facility (the “Three-Year Term Loan”, and together with the Eighteen-Month Term Loan, the “Term Loans”) and a five-year $750.0 million senior unsecured multi-currency revolving credit facility, including a $25.0 million sublimit for swingline loans and a $75.0 million sublimit for the issuance of letters of credit (the “Revolving Credit Facility” and, together with the Term Loans, the “Credit Facilities”).

The Credit Agreement contains an option to request increases of the Credit Facilities (in any combination thereof) of up to an aggregate amount of $500.0 million, subject to lender agreement, and upon the satisfaction of certain conditions.

The Revolving Credit Facility was undrawn and the letters of credit were unused as of April 3, 2026.

On June 27, 2025, Ralliant borrowed $1.15 billion, drawn pro rata under the Term Loans.

The proceeds were used to pay Fortive on June 27, 2025, as consideration for the contribution of assets to Ralliant by Fortive in connection with the Separation.

On March 30, 2026, Ralliant entered into Amendment No.

2 (the “Second Amendment”) to the Credit Agreement.

The Second Amendment, among other things, (i) refinanced the $530.8 million then outstanding under the Eighteen-Month Term Loan with a $550 million term loan due March 2029 that includes an applicable borrowing rate thereunder that is 12.5 basis points higher than that of the Eighteen-Month Term Loan;

(ii) reduced the amount outstanding under the Three-Year Term Loan from $619.2 million to $600 million and decreased the applicable borrowing rate thereunder by 12.5 basis points;

and (iii) removed the 85% cap on netting cash and cash equivalents outside of the United States for purposes of calculating the Company’s consolidated net leverage ratio.

Refer to Note 4 of the notes to the consolidated and combined condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q for more information related to the Company’s long-term indebtedness.

Borrowings under the Credit Agreement are prepayable at the Company’s option at any time in whole or in part without premium or penalty.

Term Loans may not be reborrowed once repaid.

Amounts borrowed under the Revolving Credit Facility may be repaid and reborrowed from time to time prior to the maturity date of the Revolving Credit Facility.

The Credit Agreement requires Ralliant to maintain a Consolidated Net Leverage Ratio, as defined by the Credit Agreement, of 3.50 to 1.00 or less;

Borrowings under the Credit Agreement are prepayable at any time in whole or in part without premium or penalty.

Term loans under the Credit Agreement may not be reborrowed once repaid.

Amounts borrowed under the Revolving Credit Facility may be repaid and reborrowed prior to the maturity date.

Ralliant must maintain a Consolidated Net Leverage Ratio, as defined by the Credit Agreement, of 3.50 to 1.00 or less;

provided that, not more than two times after the Closing Date of the Credit Agreement, the maximum Consolidated Net Leverage Ratio may be increased to 4.00 to 1.00 in connection with any permitted acquisition by Ralliant occurring after the Closing Date with aggregate consideration (including, without duplication, the assumption or incurrence of indebtedness in connection with such acquisition) equal to or in excess of $100.0 million, which such increase shall be applicable for the fiscal quarter in which such acquisition is consummated and the three consecutive quarters thereafter;

provided that, there shall be at least one full fiscal quarter following the cessation of each such increase during which no such increase shall then be in effect.

The Consolidated Net Leverage Ratio is calculated at the end of each fiscal quarter commencing with the fiscal quarter ending September 26, 2025.

The Company cannot assure you that its net cash provided by operating activities, cash and equivalents, or cash available under its Credit Facilities will be sufficient to meet its future needs.

The Consolidated Net Leverage Ratio is calculated at the end of each fiscal quarter.

The Term Loans under the Credit Agreement contain customary covenants.

None of these covenants are considered restrictive to Ralliant’s operations.

As of April 3, 2026, Ralliant was in compliance with all of the covenants under the Credit Agreement, as amended.

The Company cannot assure that its net cash provided by operating activities, cash and equivalents, or cash available under its Credit Facilities will be sufficient to meet its future needs.

If the Company is unable to generate sufficient cash flows from operations in the future and if availability under its Credit Facilities is not sufficient, the Company may have to obtain additional financing.

If the Company obtains additional capital by issuing equity, the interests of its existing stockholders will be diluted.

If the Company obtains additional capital by issuing equity, the interests of existing stockholders will be diluted.

If the Company incurs additional indebtedness, that indebtedness may contain financial and other covenants that may significantly restrict its operations.

The Company cannot assure you that it could obtain refinancing or additional financing on favorable terms or at all.

On June 28, 2025, the Company's Board of Directors approved a share repurchase authorization of up to $200.0 million of the Company’s common stock.

The Company cannot assure that it could obtain refinancing or additional financing on favorable terms or at all.

On June 28, 2025, the Company's Board of Directors (the “Board”) approved a share repurchase authorization of up to $200.0 million of the Company’s common stock.

During the three months ended April 3, 2026, the Company repurchased 1.2 million shares of its common stock at an average price of $42.40 per share for a total cost of $50.5 million (including $0.5 million in taxes and fees), leaving $150.0 million remaining under the share repurchase authorization.

On May 8, 2026, the Board raised the share repurchase authorization to $500.0 million.

The timing and amount of share repurchases will be determined by the Company based on its evaluation of market conditions and other factors.

The share repurchase authorization has no expiration date, does not obligate the Company to acquire any particular amount of shares, and may be suspended or discontinued at any time.

The share repurchase authorization is consistent with the Company's capital allocation strategy to prioritize returning capital to shareholders.

No share repurchases have occurred as of September 26, 2025.

On October 30, 2025, the Board declared a quarterly common stock dividend of $0.05 per share, payable on December 23, 2025 to stockholders of record as of the close of business on December 8, 2025.

The share repurchase authorization is consistent with the Company's capital allocation strategy to prioritize returning capital to stockholders.

The Company plans to enter into an ASR program to execute $100 million of the share repurchase authorization.

The total number of shares ultimately repurchased under the ASR program will be determined upon final settlement and will be based on the average of the daily Rule 10b-18 volume-weighted average prices of Ralliant’s common stock during the term of the program.

The ASR program is expected to be executed during the second quarter of 2026.

On May 7, 2026, the Board declared a quarterly common stock dividend of $0.05 per share, payable on June 23, 2026 to stockholders of record as of the close of business on June 8, 2026.

Overview of Cash Flows and Liquidity

Following is an overview of the Company’s cash flows and liquidity:

Nine Months Ended

($ in millions) September 26, 2025 September 27, 2024

The following is an overview of the Company’s cash flows and liquidity:

Three Months Ended

($ in millions) April 3, 2026 March 28, 2025

Net cash provided by operating activities $ 19.1 $ 72.0

1 unchanged sentence

Proceeds from sale of property — 1.5

Cash paid for acquisitions, net of cash received — (1,718.2)

Cash infusion into divestiture — (14.0)

Net cash used in investing activities $ (8.7) $ (4.1)

Proceeds from borrowings $ 1,146.8 $ —

Consideration paid to Former Parent in connection with Separation

Net transfers (to) from Former Parent

(10.2) 1,434.5

Payments for debt issuance costs

Net transfers to Former Parent

Repurchase of common shares (50.5) —

Dividends paid (5.6) —

All other financing activities (2.2) —

Net cash (used in) provided by financing activities

Net cash used in financing activities

$ (59.1) $ (72.6)

1 unchanged sentence

Net cash provided by operating activities can fluctuate significantly from period-to-period as working capital needs and the timing of payments for income taxes, interest, pension funding, and other items impact reported cash flows.

Net cash provided by operating activities was $296.0 million during the year-to-date period, representing an increase of $2.6 million, or 1.9%, compared with the comparable period of 2024.

Net cash provided by operating activities was $19.1 million during the first quarter, representing a decrease of $52.9 million compared with the comparable period of 2025.

The year-over-year change in net cash provided by operating activities was primarily attributable to the following factors:

• A year-over-year decrease of $55.6 million in net earnings, net of non-cash items (Amortization, Depreciation, Stock-based compensation, Gain on sale of property, net of Loss from divestiture).

• The aggregate changes in Accounts receivable, Inventories, net, and Trade accounts payable used $39.1 million of cash during the year-to-date period compared with generating $26.0 million in the comparable period of 2024.

• A year-over-year decrease of $12.3 million in net earnings, net of non-cash items (Amortization, Depreciation, and Stock-based compensation).

• The aggregate changes in Accounts receivable, Inventories, net, and Trade accounts payable used $28.7 million of cash during the year-to-date period compared with using $9.4 million in the comparable period of 2025.

The amount of cash provided by the aggregate of Accounts receivable, Inventories, net, and Trade accounts payable depends upon how effectively the Company managed the cash conversion cycle, which generally represents the number of days that elapse from the day the Company pays for the purchase of raw materials and components to the collection of cash from its customers, and can be significantly impacted by the timing of collections and payments in a period.

• The aggregate changes in Prepaid expenses and other current assets and Accrued expenses and other liabilities generated $52.3 million of cash in the year-to-date period compared with using $71.0 million of cash in the comparable period of 2024.

The year-over-year changes were dependent upon how effectively the Company managed the cash conversion cycle and driven by timing differences related to contract assets, contract liabilities, payments of employee compensation, income taxes, and interest.

• The aggregate changes in Prepaid expenses and other current assets and Accrued expenses and other liabilities used $37.2 million of cash in the year-to-date period compared with using $15.9 million of cash in the comparable period of 2025.

The year-over-year changes were primarily driven by higher incentive compensation and timing differences related to contract assets, contract liabilities, payments of employee compensation, income taxes, and interest.

Investing Activities

Cash used in investing activities decreased by $1,704.1 million during the third quarter compared with the comparable period of 2024, primarily due to less cash used for acquisitions, net of cash acquired.

Capital expenditures are made primarily for increasing production capacity, replacing aged equipment, supporting product development initiatives for product offerings, and improving information technology systems.

Capital expenditures totaled $29.2 million for the nine months ended September 26, 2025 and $19.8 million for the nine months ended September 27, 2024.

Cash used in investing activities increased by $4.6 million during the first quarter compared with the comparable period of 2025, primarily due to increased capital expenditures related to increasing production capacity, replacing aged equipment, and supporting product development initiatives for product offerings.

Capital expenditures totaled $8.7 million for the three months ended April 3, 2026 and $5.6 million for the three months ended March 28, 2025.

Financing Activities

Net cash provided by financing activities reflects Proceeds from borrowings, net of issuance costs, of $1,146.8 million, offset by the Consideration paid to Former Parent in connection with the Separation of $1,150.0 million.

Other financing activity includes net cash transferred to Former Parent in the third quarter of $57.5 million, primarily related to the cash adjustment paid to Fortive in accordance with the Separation and Distribution agreement and the payments made in the period related to the Tax Matters Agreement.

Net cash used in financing activities was $59.1 million during the first quarter, representing a $13.5 million decrease compared with the comparable period of 2025.

Net transfers to Former Parent in the first quarter of 2025 exceeded cash outflow for repurchases of common shares and dividend payments in the first quarter of 2026 as well as payments of debt issuance costs of $0.8 million associated with the Second Amendment to the Credit Agreement.

Cash and Cash Requirements

The Company held $264.2 million of Cash and equivalents as of September 26, 2025.

The Company had no cash and equivalents as of December 31, 2024.

The Company requires cash to support working capital needs, capital expenditures and acquisitions, pay interest and service debt, pay taxes and any related interest or penalties, fund its pension plans as required, pay dividends to shareholders, and support other business needs or objectives.

The Company held $268.0 million of Cash and equivalents as of April 3, 2026.

The Company had $318.8 million of Cash and equivalents as of December 31, 2025.

The Company requires cash to support working capital needs, capital expenditures and acquisitions, pay interest and service debt, pay taxes and any related interest or penalties, fund its pension plans as required, pay dividends to stockholders, and support other business needs or objectives.

With respect to cash requirements, the Company generally intends to use available cash and internally generated funds to meet these cash requirements, but in the event that additional liquidity is required, particularly in connection with acquisitions and repayment of maturing debt, the Company may also borrow under its Credit Facilities or enter into new credit facilities to borrow directly thereunder.

5 unchanged sentences

The amount of foreign remittance taxes that may be applicable to such earnings is not readily determinable given local law restrictions that may apply to a portion of such earnings, unknown changes in foreign tax law that may occur during the applicable restriction periods caused by applicable local corporate law for cash repatriation, and the various tax planning alternatives it could employ if the Company repatriated these earnings.

Pursuant to the terms of the Tax Matters Agreement, Ralliant will reimburse Fortive or pay taxing authorities directly for an amount contractually agreed with Fortive of approximately $51.0 million.

Of the approximately $51.0 million of tax transaction costs, $16.0 million was paid in the third quarter and $35.0 million was accrued as a payable due to Fortive as of September 26, 2025, of which $25.9 million was subsequently paid on September 29, 2025.

The total $51.0 million tax transactions costs, were recognized in the third quarter and were recorded as a offset to additional paid-in capital as the items represent a settlement with the Former Parent in accordance with the Tax Matters Agreement.

Borrowings under the Credit Facilities bear interest as described in Note 5 of the notes to the consolidated and combined condensed financial statements.

At facility close, Ralliant made an interest election of six-month Secured Overnight Financing Rate (“SOFR”).

The first related interest payment of $16.4 million was due on September 29, 2025.

The second payment is due on December 29, 2025, at which time a new election will be made.

As of September 26, 2025, the Company believes it had sufficient liquidity to satisfy its cash needs for at least the next 12 months and foreseeable future.

Borrowings under the Credit Facilities bear interest as described in Note 4 of the notes to the consolidated and combined condensed financial statements included elsewhere in this Quarterly Report on Form 10-Q.

As of April 3, 2026, the Company believes it had sufficient liquidity to satisfy its cash needs for at least the next 12 months and foreseeable future.

CRITICAL ACCOUNTING ESTIMATES

There were no material changes during the three and nine months ended September 26, 2025 to the items disclosed as critical accounting estimates in the “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Company’s Information Statement filed as an exhibit to the Company’s Form 10-12B/A on May 28, 2025.

There were no material changes during the three months ended April 3, 2026 to the items disclosed as critical accounting estimates in “Management’s Discussion and Analysis of Financial Condition and Results of Operations” included in the Form 10-K.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 2. Management’s Discussion and Analysis